Why Ford Can Drive Higher

The worst appears to be over in Europe for Ford, suggesting that shares could surge 50% over the next two years.

Ford (ticker: F) stock has surged more than 50% over the past year, but its sales recovery isn't yet firing on all cylinders. Last quarter, pre-tax profits in North America reached the highest level in a decade, but losses in Europe widened.

The good news is that demand in Europe appears to be close to bottoming out, and perhaps has even done so already. Ford's current losses there stem partly from investments that should pay off...